Press Release

Houston, Texas - January 27, 2015 - KBR announced today that it has been awarded a technical services agreement by Magnolia LNG LLC to provide cost verification and other services associated with the delivery of the Magnolia LNG export terminal project located in the Port of Lake Charles, Louisiana.

Under the terms of the contract, KBR will complete a FEED gap assessment, work plan and support completion of the remaining FEED activities. This agreement includes the development of a project EPC contract execution plan, schedule, contract and pricing as well as an EPC bridging plan for the construction of the export facility.

Additionally, KBR signed a Memorandum of Understanding with Magnolia LNG LLC and Korea's SK E&C USA under which KBR and SKEC agree to form a joint venture to execute engineering, procurement and construction of the initial two LNG production trains with provision for two additional trains. Upon completion, the four train Magnolia LNG facility will have the capacity to export eight million tons of LNG per year.

KBR has delivered more than one third of the world's current LNG production capacity. KBR expects to book its undisclosed revenues of the project in the company's 2014 fourth quarter backlog of unfilled orders for the Engineering and Construction segment.

About KBR, Inc.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing about 27,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses:  Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through Granherne/Energo and GVA; Engineering & Construction, including Upstream Oil & Gas; LNG/GTL; Downstream Petrochemicals and Chemicals; and differentiated EPC; and, Government Services, including program management and long term annuity contracts.

KBR is proud to work with its customers across the globe to provide technology, value-added consulting services and integrated EPC skills to ensure a consistent project delivery with predictable results. At KBR, we deliver.

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Forward Looking Statement

The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.

KBR's most recently filed Annual Report on Form 10-K/A, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

CONTACT:
Zac Nagle
Vice President, Investor Relations
713-753-5082
investors@kbr.com

or

Rick Goins
Director, Communications
713-753-3800

Mediarelations@kbr.com